“Well placed to address cyclical uncertainties” Denver Gold Forum September 21, 2015 Octavio Alvídrez, CEO LSE:Fres BMV:Fres www.fresnilloplc.com
Disclaimer This document includes statements that are, or may be deemed to be, “forward-looking statements”. These forward- looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “may”, “will”, or “should” or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this document and include, but are not limited to, statements regarding the Fresnillo Group’s intentions, beliefs or current expectations concerning, among other things, the Fresnillo Group’s results of operations, financial position, liquidity, prospects, growth, strategies and the silver and gold industries. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements are not guarantees of future performance and the actual results of the Fresnillo Group’s operations, financial position and liquidity, and the development of the markets and the industry in which the Fresnillo Group operates, may differ materially from those described in, or suggested by, the forward-looking statements contained in this document. In addition, even if the results of operations, financial position and liquidity, and the development of the markets and the industry in which the Fresnillo Group operates are consistent with the forward- looking statements contained in this document, those results or developments may not be indicative of results or developments in subsequent periods. A number of factors could cause results and developments to differ materially from those expressed or implied by the forward-looking statements including, without limitation, general economic and business conditions, industry trends, competition, commodity prices, changes in regulation, currency fluctuations (including the US dollar and Mexican Peso exchange rates), the Fresnillo Group’s ability to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves, changes in its business strategy, political and economic uncertainty. Forward-looking statements may, and often do, differ materially from actual results. Any forward-looking statements in this document speak only as of the date of this document, reflect the Fresnillo Group’s current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Fresnillo Group’s operations, results of operations, growth strategy and liquidity. Investors should specifically consider the factors identified in this document which could cause actual results to differ before making an investment decision. Subject to the requirements of the Prospectus Rules, the Disclosure and Transparency Rules and the Listing Rules or applicable law, the Fresnillo Group explicitly disclaims any obligation or undertaking publicly to release the result of any revisions to any forward-looking statements in this document that may occur due to any change in the Company’s expectations or to reflect events or circumstances after the date of this document. 21/09/2015 2
Fresnillo at a Glance Location Key Highlights � World’s largest silver producer (45 moz in 2014) and Mexico’s HERRADURA second largest gold producer (596 koz in 2014) DISTRICT ORISYVO � Market cap of US$6.8 billion * � Silver resources of 2 billion ounces and gold resources of 34 SAN JULIÁN million � Mining concessions of 2 million hectares in Mexico and 370 FRESNILLO thousand hectares in Peru DISTRICT CIÉNEGA DISTRICT � Cash costs and AISC amongst the lowest in the industry � Substantial, high quality project pipeline and strong commitment to disciplined and sustainable growth: production SOUTH PERU target of 65 moz of silver and 750 koz of gold by 2018 � Focus on projects that can be developed into low-cost, world- Fresnillo plc mines (6 and a satellite mine)** class mines Development projects (2) Advanced exploration projects (4) Prospects in drilling Prospects at an early stage • As at 17 September 2015 • ** Operations at Soledad-Dipolos are currently suspended 21/09/2015 3
Our Business Model and Strategy …supported by four strategic pillars to create Our Business Model… value 1. Maximise potential of existing operations • Operate at 100% capacity • Low-cost producer • Optimise mining method and metallurgy to maintain high recovery rates 2. Deliver growth through development projects • Track record of delivery on time and on budget • Focus on CAPEX control • Specialised Engineering and Construction team 3. Extend the growth pipeline • Evaluate early-state acquisitions • Maintain reserves for 10 years • Ensure organic growth and assess key acquisition opportunities 4. Advance sustainable development • Improve general health • Reinforce safety • Minimise the environmental impact • Maintain sound relations with communities 4
2014 Highlights • Silver production of 45 moz and gold production of 596 koz • Revenues: US$1.4 billion • Continued focus on cost control • Operating profit: US$245.6 million • EBITDA: US$567.3 million; EBITDA margin of 40.1% • Capex of US$425.6 million and total investment in exploration of US$184.5 million (including US$15.7 million capitalised) • Total workforce: 7,090 (49.4% unionised employees and 50.6% contractors) • Total assets: US$3.8 billion (as at 30 June 2015) • Cash and investments: US$475.7 million (as at 30 June 2015) 21/09/2015 5
Operations Review Fresnillo Key operating statistics 1H15 Silver production – moz 7.8 Cost per tonne – US$/t 48.5 Gold production – koz 15.1 Cash cost - US$/oz 5.8 Silver ore grade - g/t 220 AISC - US$/oz 11.1 Gold ore grade - g/t 0.50 AISC (LoM) (2023) – US$/oz 6.20 � Should allow development rates of 1H15 silver production decreased: Actions taken: c.4,000m / month to be maintained � Lower � Enhanced contractor supervision silver ore grade reflecting � Advancing declines in order to reach limited access to high ore grade areas � Additional contractors higher grade veins & regain operating � Lower volumes processed due to stope flexibility � Measures to manage stope instability development delays and stope instability Stabilise and then improve ore grades and production to provide solid base for potential expansion Ore grades expected to move towards reserve grade once operating stope flexibility regained 21/09/2015 6
Operations Review (Cont’d) Saucito Ciénega Key operating statistics 1H15 Key operating statistics 1H15 Silver production – moz 11.4 Gold production – koz 45.7 Gold production – koz 44.7 Silver production – moz 2.1 Silver ore grade - g/t 341 Gold ore grade - g/t 2.25 Gold ore grade - g/t 1.50 Silver ore grade - g/t 117 Cost per tonne – US$/t 42.7 Cost per tonne – US$/t 66.7 Cash cost - US$/oz 0.6 Cash cost - US$/oz 297.0 AISC - US$/oz 6.0 AISC - US$/oz 650.0 AISC (LoM) (2021) – US$/oz 6.0 AISC (LoM) (2026) – US$/oz 803.1 Efficiency improvements at Saucito II planned for 1H16: Conclude analysis of alternatives for potential expansion installation of vibrating screens to either 5,000 or 6,000 TPD post good exploration results 21/09/2015 7
Operations Review (Cont’d) Herradura Noche Buena Key operating statistics 1H15 Key operating statistics 1H15 Gold production – koz 188.1 Gold production – koz 70.5 Gold ore grade – g/t 0.74 Gold ore grade - g/t 0.48 Ore processed – mt 10.9 Ore processed – mt 8.7 Total volume hauled – mt 57.7 Total volume hauled – mt 42.3 Cost per tonne – US$/t 8.7 Cost per tonne – US$/t 8.2 Cash cost – US$/oz 490.2 Cash cost - US$/oz 897.9 AISC - US$/oz 873.2 AISC - US$/oz 940.9 AISC (LoM) (2019) – US$/oz 717.0 AISC (LoM) (2019) – US$/oz 1,124.5 Expect to reach steady state production by 4Q15 after Continue to focus on containing costs and ramp-up and resolution of solution processing issues maximising efficiency of production 21/09/2015 8
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